Reclaiming PAYE tax on flexible drawdown payment in advance of self assessment at end of tax year
My father entered into a flexible drawdown product in March 2012, having previously been in a capped drawdown product with the same provider (he is 71 years of age).
His intention has been to draw the maximum amount of money he can from his fund each year so that he remains within Basic Rate tax (he has approximately £22k of other pension income per annum from both State and an employer final salary pension).
With this in mind he requested drawdown of £20k from the provider, and this has been made in April 2012 (2012-13 tax year). The provider has applied tax code/basis of 810L to to the payment which has resulted in tax of £7,839 being deducted meaning the net payment was £12,161.
I appreciate that he will have a basic rate liability of 20% to pay and that, assuming his other income receipts in the current year means he is only liable to basic rate tax for the year, under self assessment he will be able to reclaim the additional tax suffered at the end of the tax year.
Is there any way to accelerate recovery of the near £4k of additional tax he has suffered - he would like to benefit from the interest (however small that may be given the current economic climate) rather than allowing the tax man to?
- Anybody still doing returns? 699 30
- Clothing 505 13
- Change to PAYE TAX CODE 98 5
- Capital allowances on transfer of business 153 7
- Parent and subsidiary... 62 2
- Capital Gains PPR and allocation of costs 340 16
- Designated sole Residence 129 2
- HMRC Sends Derbyshire pensioner Doug Yeomans tax demand for £4.7 BILLION! 711 15
- Anyone know what this is? 220 6
- HMRC filing meltdown? 885 27
- 'My colleague fills in his own Self Assessment" and he/she claims,x,y and z" 493 7
- Selling Capital Allowences from Self Employed to Ltd Buisness 259 9
- no utr 277 8
- client can't/won't pay 2,114 49
- Director drawings 601 32
- Tax Returns for non residents 290 2
- Investment properties/freehold land 86 1
- Capital Loss 123 3
- LLP formed in 2013 97 1
- File Abbreviated LLP accounts online? 192 7
- Form MR01 (Particulars of a charge) - does this need to be filed if you remortgage with the same lender? 950
- Underpaid VAT assessment and relation to SATR 672
- Did you realise Google will not patch android exploit ... 621
- Latest phishing scam 597
- Cashback for opening business bank acct = trading income? 434
- Auto Enrolment Questions Answered 323
- Scratch Head 260
- Loan benefit after person ceases as director/employee 253
- Sabbatical payments 213
- Negligible Value Claim 194